The yen clings to the flat

27 January, 2015

On Tuesday morning, the USD/JPY pair is trading exactly in the middle of the mid-term side channel without reacting to the comments of the Bank of Japan.

The Japanese yen at the end of January is in the middle of a side channel of trade, and the USD/JPY pair is trading around the mark of 118.0, and this is a good result, given the volume of volatility in the instrument.

Today, Japan's Minister of Economy Mr. Amari said that the central bank and the economic system may take longer to achieve the inflation target. Target inflation remains at 2%, and we are now talking about a period exceeding two years. The strong side of the BoJ and the Cabinet is that clear timetables for achieving the inflation target were not originally set - so they can work on it thoughtfully and without haste.

Naturally, the downward trend in the commodities market has a negative impact on inflation works. In the event that the period of low oil prices would be protracted by six months or more, another 12 months can be safely added to the designated time of 2 years.

Commodity prices objectively affect the consumer price index, but this is an external factor, which cannot be curbed.

In general, the Japanese economy is still in a fairly equilibrium state: stimulation processes take their course, and all would be well if not for the proportional growth of the national debt, which the politicians are so carefully being silent about.

In anticipation of the New Year, the main currency pair, it seems, has moved into a phase of consolidation within a narrow range. The euro/dollar is barely moving on Tuesday afternoon. The current quotation of the main currency pair is 1.0972, and is slightly higher than yesterday...

Movements in the currency markets have been a little benign this week, meanwhile indices have jumped higher as Christmas cheer engulfs investors. We are still some way off where we started the month of December on European indices...

On Thursday afternoon, the main currency pair remained under pressure due to yesterday's news about the readiness of the regulator to extend QE. The single European currency on Thursday afternoon is still in a weak position, as investors continue to analyze the information obtained yesterday...

The British Pound is weakening for the third day in a row, but it would all be well if not for the indicators of force from the "bears" in the GBP/USD pair. The current quote in the pair is 1.5127, and it is not far off from the September minimum of 1.5107...

Eurodollar is still being corrected. The price is trying to stay below the 0/8 level. Possibly, on Wednesday the pair may test the previous high one more time. If the market rebounds from it again and stays below the 0/8level, I am planning to increase my position...

On Thursday morning, the main currency pair is still trading down because of mass pressure on the European currency. So, the euro/dollar in the morning on Thursday remained under pressure, although it is taking a very half-hearted attempt to win back at least a symbolic part of yesterday losses...

The Japanese yen was being sold yesterday and continues to be sold today. The current price of the USD/JPY pair is 119.15. Technically, the instrument clearly intends to move to 120.0 and maybe slightly higher...

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